Lack of Market Stability Leads F1 To Postpone Singapore IPO Sale

Although there was "strong appetite" for F1 shares, CVC will delay sale

Turmoil "in financial markets has pushed the owners" of F1 to delay a $3B share offering in Singapore due later this month, according to sources cited by Pignal, Blitz & Grant of the FINANCIAL TIMES. A formal decision by F1’s owners, led by private equity firm CVC, “is expected early next week.” But a source said that “it is now ‘inconceivable under any scenario’ that the listing will happen by the end of June, as was originally planned.” A source said, “The markets are just awful. It is not happening in the next few weeks.” But a banker said that a “pre-marketing tour to gauge investor interest found ‘strong appetite’ for F1 shares.” An adviser said, “It’s all down to the macroeconomic environment at this point. Investors are comfortable with the F1 story” (FINANCIAL TIMES, 6/13).

COMING TO AMERICA: Meanwhile F1 Grand Prix of America Exec Chair Leo Hindery said that he expected the F1 organization “to officially designate the race as part of its 2013 international calendar sometime ‘early next month.’" Hindery said “the intention is to follow” the Canadian Grand Prix, which is run every June in Montreal (Newark STAR-LEDGER, 6/12). In New Jersey, John Brennan noted F1 driver Sebastian Vettel “came to the Hudson River waterfront on Monday to try out the 2.3-mile street course,” the site that is scheduled to become part of the Grand Prix auto-racing circuit next June. Vettel gave a “thumbs-up on plans to hold a race on the streets of Weehawken and West New York.” He said that the course “most reminded him of the Belgian Grand Prix’s Circuit de Spa-Francorchamps course.” Vettel: “The bumps give the circuit a bit of soul. And the change of elevation here is something you enjoy. I’m quite surprised by that, and there should be really nice corners, and it will be good fun to drive” (Bergen RECORD, 6/12).